What exactly is Rate of Return? It is a percentage that represents the amount that you receive, after spending on the cost of the investment initially. A positive percentage indicates a profit or gain and a negative percentage indicates that you might have undergone a loss on the investment. This percentage can be used effectively to understand and determine whether or not your initial investment decision was a good one. It is also vital for future investments, as you can use this data to make better investment choices. You can use a financial calculator to easily assess what your Rate of Return percentage is and evaluate the status of an investment.